Clean Power Plan

Renewables: the 'no regrets' option

The Clean Power Plan (CPP) is the nation's first-ever carbon emission reduction rule for existing power plants. This policy requires each state to reduce its power plant emissions to, or below, a target.

The target is either a tonnage amount or an emission rate that is below what that state emitted in 2005. States must begin lowering their emissions by 2022 at the latest and reach their final goal by 2030. U.S. power plant emissions are expected to be 32% lower in 2030 than they were in 2005.

States can decide for themselves what actions to take to meet their target. For example, they can reduce the amount of energy produced by the coal plants in the state and replace it with energy from zero or lower carbon generators, such as wind or solar resources or efficient natural gas plants, and other methods. States will have to develop State Implementation Plans (SIP) to reach either target and submit that plan to the EPA for approval. Initial filings regarding a state's SIP were due to the EPA in September 2016. If a state does not submit a plan it will have to conform to a plan developed by the EPA.

Wind Power is a ‘No
Regrets’ Option to Help States meet Clean Power Plan Requirements.

On August 3, 2015, the Unites States Environmental
Protection Agency (EPA) released its final Clean Power Plan rule that will
limit the amount of carbon dioxide pollution that can be emitted from existing
power plans by 2030.

On February 9, 2016, the Supreme Court issued a stay on the
rule, pending judicial review. On May
16, 2016, the U.S. Court of Appeals for the D.C. Circuit issued an order for
litigation to be reviewed en banc by the active members of the court. The D.C. Circuit held oral arguments in the case on September 27, 2016.

Most states in the MISO footprint have stopped formally working
on their State Implementation Plans. Minnesota is the only state in our
region that is actively convening stakeholders and developing a compliance
plan.

Wind energy is the
lowest-cost solution for states to comply with their Clean Power Plan targets.
Data analyzed by LBNL has shown that the price consumers pay for wind power has
dropped 66 percent in the last 6 years. Lazard has found that wind energy is by far the
lowest-cost energy source for reducing emissions, even without tax incentives.
In fact, it makes sense for utilities to buy wind to save their customers
money, and its environmental benefits that can be used for CPP compliance are
an added bonus.

Clean Grid Alliance is
committed to working in the stakeholder processes of the states in its footprint to develop State
Implementation Plans that will take full advantage of wind and solar energy's economic
and environmental benefits.